Webber Wentzel picked up the trophy for IJGlobal ESG Legal Adviser of the Year in the Emerging Markets category having impressed the independent panel of judges with its work across Africa.

The judges singled out Webber Wentzel based on its having: “Targeted housing standards, a key area of decarbonisation need, and investment in regions that are repeatedly an area of focus, yet limits in capital flow.”

One of the judges said of Webber Wentzel: “This law firm displays clear innovation in the partnership work with TERRAGRN – encouraging capital into developing markets and the focus on the social as well… for example, socio-economic development through job creation; and creating more women entrepreneurs which shows impact not just at the environmental level, but on a social basis as well.”

Another adds: “Webber Wentzel deserves recognition as a law firm that is attempting to do more than just act for clients in the ESG space. It demonstrates excellent diversification."

According to its submission, Webber Wentzel has partnered with TERRAGRN which has a goal of creating sustainable, biodiversity-compliant forests in African countries to deliver net-zero emissions; socio-economic development through job creation; and create more women entrepreneurs. Beginning with South Africa (SA), it will follow in Kenya, Ethiopia and Ghana.

TERRAGRN UK is raising $2 billion in patient capital from green investors/ESG funds in developed markets to establish this initiative in SA. It anticipates delivering an 8% yield on long-term debt and 25-30% IRR for equity investors. Wealth created will be shared with women entrepreneurs, the local workforce and stakeholders/communities.

This programme’s goal is to contribute to food security, gender equality, reduced inequalities, and climate action through nature-based solutions that will create jobs, bring more women into the workforce, and usher in progress and sustained livelihoods within communities.

South Africa’s project goals from 2021 through to 2023 are to plant a biodiversity-compliant forest of more than 200 million bamboo trees on 200,000ha of land in Mpumalanga; engage in excess of 300 women entrepreneurs to create the forest (helping enable gender equality and an inclusive economy); and create watershed solutions and a rainwater harvesting scheme to meet the needs of the forest and the community.

While this award is granted for activity from the start of April 2021 through to the end of March 2022, IJGlobal makes it clear in submissions that – given the nature of ESG activity – judging for ESG awards is less stringent on this front and so it is interesting to note TERRAGRN’s plans from 2024 through to 2030.

In South Africa, the goal is to create more than 50,000 jobs over 8 years. It is anticipated that several entrepreneurial businesses will emerge in adjunct sectors because of the Agroforest Project, including in civil works, forestry and pelletisation.

The forest will have capacity to produce 10 million tonnes of bamboo biomass pellets annually for export by 2030. And from 2030, the estimated annual revenue from exports is estimated at between $1.4 billion and $1.75 billion.

It will partner with a solar farm to provide renewable energy; establish employee wellness programmes, while the planting of the forest will support SA's National Determined Contribution to achieve global emissions reduction by removing 4.5 million tonnes net of CO2 annually by 2030.

According to the Webber Wentzel submission: “We are currently supporting the project first phase by providing a regulatory framework and authorisations report, initial corporate advice, early commercialisation work, ad hoc legal advice and project management assistance to execute on the legal, technical and financial workstreams in a coordinated and structured fashion.”

The focus of the early commercialisation work is on corporate and project finance structuring and commercial agreements with growers and other service providers required for the project.

To date, Webber Wentzel has achieved the signing of an MoU to secure some 350,000ha with the Manala Mgibe Traditional Council and the Royal Household of Mpumalanga, while also engaging with a number of government departments including those focused on land use, rural development, forestry, environment, water, sanitation, trade and climate change.

Webber Wentzel has worked with 2 global banks that have agreed to structure the financing and syndicate $2 billion investment needs for the project; while MTN Foundation has also signed up to support TERRAGRN on the ground.

WRI Africa initiated approval of TERRAGRN to be listed as a key project in Africa on the TerraMatch investor portal, and WOTR (an NGO with more than 30-years’ experience in soil and water conservation, ecosystem restoration and climate-resilient sustainable farming) agreed to help design the watershed solution.

The judges were also impressed by Webber Wentzel’s involvement with CDC – Divercity Urban Property Fund investment.

The law firm acted for CDC Group, the UK’s development finance institution and one of the largest impact investors in Africa, on its $36 million (ZAR 500m) investment into Divercity Urban Property Fund.

The transaction closed on 29 June 2021.

CDC's high-impact investment will fund the construction of more than 2,500 new and green affordable residential units over the next 5 years.

These will be built in well-located but underinvested neighbourhoods, mainly in Johannesburg, expanding housing opportunities for low- and middle-income households.

The units will be built according to “green” housing standards, in alignment with CDC’s commitment to invest through a climate lens.

The transaction also enabled Divercity’s acquisition of Ithemba Property, which will provide day-to-day management of the rental units.

This investment occurs at a time when South Africa faces a housing shortage of more than 2.3 million units. The investment is also expected to create between 2,000 and 4,000 local construction and operational jobs, opening opportunities and boosting employment.

Other funders of this transaction are Futuregrowth and existing Divercity shareholders.

Picture added after IJGlobal ESG Awards 2022 (left-to-right): IJGlobal editor Ila Patel; Paula-Ann Novotny of Webber Wentzel; IJGlobal editorial director Angus Leslie Melville.